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Team Payroll, Competitive Balance, and Team Performance in the Japan Professional Baseball League: A Study using 1993-2004 Panel Data

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  • yamamura, eiji

Abstract

This research aimed to explore how a team payroll has an effect on team performance as measured by the winning percentage using panel data of the Japan Professional Baseball League; separately for each of the Central and the Pacific Leagues. The major finding is that a team payroll has a remarkably positive impact on the outcomes of Pacific League team performance; however it has none on central League teams. The reason why such different results are brought about is that the popularity of the Central League decreases the incentive to allocate the resource of teams efficiently with an objective of win maximization.

Suggested Citation

  • yamamura, eiji, 2006. "Team Payroll, Competitive Balance, and Team Performance in the Japan Professional Baseball League: A Study using 1993-2004 Panel Data," MPRA Paper 10836, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10836
    as

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    File URL: https://mpra.ub.uni-muenchen.de/10836/1/MPRA_paper_10836.pdf
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    References listed on IDEAS

    as
    1. La Croix, Sumner J & Kawaura, Akihiko, 1999. "Rule Changes and Competitive Balance in Japanese Professional Baseball," Economic Inquiry, Western Economic Association International, vol. 37(2), pages 353-368, April.
    2. Daniel Mizak & Anthony Stair, 2004. "The relationship between payroll and performance disparity in major league baseball: an alternative measure," Economics Bulletin, AccessEcon, vol. 12(9), pages 1-14.
    3. Eiji Yamamura & Inyong Shin, 2009. "Convergence, clustering and their effects on attendance in the Japan Professional Baseball League," Applied Economics, Taylor & Francis Journals, vol. 41(25), pages 3257-3265.
    4. repec:ebl:ecbull:v:12:y:2004:i:9:p:1-14 is not listed on IDEAS
    5. Martin Schmidt & David Berri, 2002. "Competitive Balance and Market Size in Major League Baseball: A Response to Baseball's Blue Ribbon Panel," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 21(1), pages 41-54, August.
    6. Martin Schmidt, 2001. "Competition in Major League Baseball: the impact expansion," Applied Economics Letters, Taylor & Francis Journals, vol. 8(1), pages 21-26.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Team payroll; competitive balance; team performance;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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